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Indexes set for weekly gains

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Nike ( NKE ) rises after better-than-expected Q1 revenue forecast

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Washington, Beijing in deal to speed rare earth shipments

to US

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Trump cancels trade talks with Canada over digital tax

(Updates to market close)

By Stephen Culp

NEW YORK, June 27 (Reuters) - Wall Street extended its

rally on Friday, sending S&P 500 and Nasdaq to record closing

highs as trade deal hopes fueled investor risk appetite and

economic data helped solidify expectations for rate cuts from

the U.S. Federal Reserve.

Stocks pared gains after U.S. President Donald Trump

terminated trade negotiations with Canada in response to its

digital tax on technology companies

Even so, all three major U.S. stock indexes posted weekly

gains.

"This market's been pretty resilient," said Chuck Carlson,

chief executive officer at Horizon Investment Services in

Hammond, Indiana. "Investors are riding momentum and looking for

breakouts."

"They don't want to get caught on the wrong side of this

thing," Carlson added. "Many investors already have missed out.

And now you have the S&P flirting with an all-time high."

The Personal Consumption Expenditures report from the

Commerce Department showed consumer income and spending

unexpectedly contracted in May. And while tariffs have yet to

affect price growth, inflation continues to hover above the

Fed's 2% annual inflation target.

A separate report from the University of Michigan confirmed

consumer sentiment has improved this month, but remains well

below December's post-election bounce.

Financial markets have priced in a 72% likelihood that the

Fed will implement its first rate cut of the year in September,

with a smaller, 21% probability of a rate cut coming as soon as

July, according to CME's FedWatch tool.

Washington and Beijing reached an agreement to expedite

rare-earth shipments to the U.S., a White House official said,

well ahead of the July 9 expiration of the 90-day postponement

of U.S. President Donald Trump's "reciprocal" tariffs.

Additionally, U.S. Treasury Secretary Scott Bessent said the

Trump administration's trade deals with 18 of the main U.S.

trading partners could be done by the September 1 Labor Day

holiday.

According to preliminary data, the S&P 500

gained 31.93 points, or 0.52%, to end at 6,172.95 points,

while the Nasdaq Composite gained 105.55 points, or

0.52%, to 20,273.46. The Dow Jones Industrial Average

rose 430.16 points, or 0.99%, to 43,817.00.

Chipmaker Micron's MU.O upbeat forecast revived investor

confidence in artificial intelligence-related stocks, while

Nvidia NVDA.O edged closer to $4 trillion market capitalization

after reclaiming its position as the world's most valuable

company.

Nike's ( NKE ) shares NKE.N jumped after forecasting a

smaller-than-expected drop in first-quarter revenue.